The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lear beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins contracted, net margins grew.
Lear recorded revenue of $3.72 billion. The 11 analysts polled by S&P Capital IQ predicted a top line of $3.58 billion on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $3.51 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.48. The 18 earnings estimates compiled by S&P Capital IQ forecast $1.37 per share. GAAP EPS of $9.00 for Q4 were much higher than the prior-year quarter's $1.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.1%, 30 basis points worse than the prior-year quarter. Operating margin was 4.3%, 10 basis points worse than the prior-year quarter. Net margin was 23.7%, 2,070 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.60 billion. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $15.18 billion. The average EPS estimate is $5.07.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 92 members out of 94 rating the stock outperform, and two members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Lear a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lear is outperform, with an average price target of $56.38.
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